Which One of the Following Is an Example of the Circular

question 200

Multiple Choice

Which one of the following is an example of the circular flow model and shows the interdependence of households and firms?

• A) Households demand their resources from the firms in the factor markets and, in turn, supply in the product market the goods and services produced by firms.
• B) The firms go to the resource market to supply resources that households demand and, in turn, provide households with the goods and services produced for the product markets.
• C) Households supply their resources to the firms in the factor markets and, in turn, demand in the product market the goods and services produced by the firms.
• D) The firms in the factor markets pay to households in the form of wages, interest, rent and profit ⎯ for resources demanded.
• E) The circuit is completed when the payments flow from households, through the product markets, and to the firms for the goods and services they demand.

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Definitions:

Leadership

The act of guiding or influencing a group towards achieving its goals by setting direction, creating an inspiring vision, and encouraging teamwork.

Managerial Roles

The specific categories of activities performed by managers, as identified by Henry Mintzberg, including interpersonal, informational, and decisional roles.

Behavioral Scientists

Researchers who study and analyze the actions and interactions of humans and animals.

Leadership

The act of guiding, directing, and influencing others towards achieving collective goals or visions.